Labour situation in the Surat industry has improved, but the same cannot be said of liquidity. Huge investments in real estate have dried up the flow of money in the local markets. However, with good rainfall and some firm policy announcements from the Indian Government, one hopes that the year ends on a better note.
On the polyester fron, June 2012 witnessed a very confusing scenario in terms of marketing policies by polyester filament yarn suppliers. The month opened with roll over prices of May for POY, which were immediately revised by Rs. 3 per kg. on the down side. In the same week further reduction of Rs 3 per kg was announced by a leading supplier.
However, market leader, refused any change and tried to control the panic situation. Texturisers were however forced to follow market demands and were already passing on the Rs to Rs 8 per kg. reduction to their customers. Yarn consumers are keenly following the developments and await policies for July.